Second offer comes as Hanwha heir looks to reinforce position as largest individual shareholder while addressing concerns over stock decline
Kim Dong-seon, president of Hanwha Machinery & Service Holdings and Hanwha Group Chair Kim Seung-youn's youngest son, has decided to launch a second tender offer for company shares worth about 27 billion won ($20 million), citing the need to protect minority shareholders after a recent decline in its stock price.
According to Hanwha M&S' regulatory filing on Monday, the latest offer covers approximately 3.38 million common shares, equivalent to around 4 percent of the company's total shares.
The second tender offer will run from Monday through Nov. 30 at the same price of 8,000 won per share as the previous offer, which ran from Oct. 12 to Nov. 2.
Hanwha M&S said Kim decided to use his personal funds to make the additional offer as the company's shares have come under renewed pressure alongside a broader market downturn following the United States' midterm election results last week.
The company's closing price on Friday stood at 7,000 won, down nearly 12 percent from 7,900 won on Tuesday, immediately after the first tender offer ended.
The latest move is intended to limit potential losses for minority shareholders and underscore Kim's commitment to taking responsibility as a leader and the company's largest individual shareholder.
Through the previous offer, Kim secured 22.98 million shares, which fell short of his intention to purchase 26.2 million shares. The acquisition raised his stake in the company by 27.18 percentage points, from 5.81 percent to 32.99 percent.
The price of Hanwha M&S increased by about 10 percent on the back of the second tender offer announcement Monday.
Hanwha M&S serves as the holding company for Hanwha Group's technology and lifestyle businesses. It was established in August, following the group's corporate split-off of the two business divisions, and relisted on the benchmark bourse Kospi in the same month.
Hanwha M&S' technology portfolio includes Hanwha Vision, Hanwha Semitech, Hanwha Momentum and Hanwha Robotics, whereas its lifestyle businesses include Hanwha Galleria, Hanwha Hotels & Resorts and Ourhome.
hwkan@heraldcorp.com
